U.S. Pours Money Into Chips, but Even Soaring Spending Has Limits
Amid a tech cold war with China, U.S. companies have pledged nearly $200 billion for chip manufacturing projects since early 2020. But the investments are not a silver bullet.
Thus, back in September, the microchip giant Intel (INTC) gathered officials at a patch of land near Columbus, Ohio, where it pledged to invest at least $20 billion in two new factories to make semiconductors.
A month later, Micron Technology (MU) celebrated a new manufacturing site near Syracuse, N.Y., where the chip company expected to spend $20 billion by the end of the decade and eventually perhaps five times that.
And in December, Taiwan Semiconductor Manufacturing Company (TSM) hosted a shindig in Phoenix, where it plans to triple its investment to $40 billion and build a second new factory to create advanced chips.
The pledges are part of an enormous ramp-up in U.S. microchip-making plans over the past 18 months, the scale of which has been likened to Cold War-era investments in the Space Race. The boom has implications for global technological leadership and geopolitics, with the United States aiming to prevent China from becoming an advanced power in chips, the slices of silicon that have driven the creation of innovative computing devices like smartphones and virtual-reality goggles.
As of January 2023, NVIDIA reports that over 25 million users have tried the GeForce Now service.
Exxon Mobil Corporation (XOM) is beginning on a period of production growth.
Federal Reserve officials are committed to fighting inflation and expect higher interest rates to remain in place until more progress is made, according to minutes released Wednesday from the central bank’s December meeting.